The need for better transportation was essential for the United
States. Miles of roads and new canals were built to connect the vast
open areas of America. The steamboat was an important means of
transportation in the Great Lakes and the Mississippi River. However,
the railroad quickly overshadowed the steamboat in the transportation
revolution.
In 1830, the U.S. only had an estimated 100 miles of
track. The railroads expanded rapidly after that. By 1860, 27,000 miles
of track were built, and by 1900, 193,000 miles of track were completed.
Importantly, these new tracks connected the eastern and western United
States, made selling goods more affordable, and allowed a network of
national supply distribution.
Railroad entrepreneurs competed
ruthlessly with each other. For example, Jay Gould of the Union Pacific
Railroad was often depicted as a greedy villain for his business
practices. In order to keep his profits up, he drove many smaller
railroad companies out of business, cut rates for large companies,
offered rebates to powerful clients, and gave free passes to political
leaders.
These unsavory business practices hurt small farmers and
business owners who often paid excessive rates to make up for the
rebates given to the wealthy. The federal government responded by
enacting the Interstate Commerce Act in 1887. This legislation
outlawed monopolies, rebates, and short-distance rates and established a
committee to police the railroad industry.
The Steel Industry
Since
the rapid growth of the railroad industry required large amounts of
steel tracks, the steel industry also profited during the Industrial
Revolution. Andrew Carnegie was involved in the expansion and
streamlining of the American steel industry. A Scottish immigrant who
moved to the U.S. in 1848, his first job was bobbin boy in a textile
factory. He eventually became one of the wealthiest men of the 19th
century.
By investing his earnings in the railroad industry,
Carnegie made enough money to build his own steel mill. His mill
operated on the principle of controlling every aspect of production to
ensure maximum cost efficiency and output. By 1900, Carnegie Steel was
the largest industrial corporation the world had ever seen.
